Sandfire Resources Ltd · ASX:SFR
Sandfire Resources — Sandfire Resources NL — Q4 FY2013 Earnings Presentation
25 slides from Sandfire Resources's earnings presentation, Jul 18, 2013
Slide 1: June 2013 Quarterly Report Presentation
For personal use only June 2013 Quarterly Report Presentation Access this presentation at: Webcast – Karl Simich, Managing Director and CEO http://www.brrmedia.com/event/113088/ 18 July 2013 http://www.sandfire.com.au Page: 1
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer Forward-Looking Statements and Competent Person’s Statement Forward-Looking Statements For personal use only • This presentation has been prepared by Sandfire Resources NL. This document contains background information about Sandfire Resources NL current at the d
Slide 3: Agenda
Agenda June 2013 Quarterly Report Presentation For personal use only Highlights Safety Mining Processing Sales FY2014 Production, Cost and Capital Guidance Exploration Mine Plan, Mineral Resource and Ore Reserve Page: 3
Slide 4: June 2013 Quarterly Highlights
June 2013 Quarterly Highlights FY2013 production; ramp-up of Concentrator and underground mine; FY2014 guidance and costs Production and Operations For personal use only June 2013 Quarter: 14,293t copper and 11,284oz gold produced; C1 cash cost of US$1.37/lb FY2013 production: 64,017t copper and 42,
Slide 5: June 2013 Quarterly Highlights
June 2013 Quarterly Highlights High-grade Mineral Resource increased; new Board and Management appointments; further debt repayment Exploration For personal use only DeGrussa Mineral Resource increased: 13.4Mt grading 4.7% Cu and 1.9g/t Au for 634,000t Cu, 795,000oz gold as at 31 March 2013 Addition
Slide 6: Safety
Safety Continued sound safety performance For personal use only LTIFR of 4.4 at June Quarter-end Increase from March Quarter 2 minor lost time injuries (LTI’s) sustained for the Quarter Safety performance in line with targets established in Safety Management Action Plan Page: 6
Slide 7: Mining Overview
Mining Overview Transition to wholly underground operations now complete OPEN PIT For personal use only Stage 1 open pit completed December 2012 – 7.7Mbcm mined Stage 2 open pit completed mid-April 2013 – 5.4Mbcm mined DSO production and sales statistics – 144,887t at 23.6% Cu and 3.3g/t Au for 34,1
Slide 8: Processing
Processing Ramp-up on track to achieve targeted production For personal use only MILL THROUGHPUT 373,375 tonnes milled – 20% increase vs. March Quarter Concentrator production has steadily ramped up following the start of commissioning in October 2012 20% Nameplate throughput target achieved from Ap
Slide 9: Processing
Processing Ramp-up on track to achieve targeted production For personal use only MILL THROUGHPUT 373,375 tonnes milled – 20% increase vs. March Quarter Concentrator production has steadily ramped up following the start of commissioning in October 2012 20% Nameplate throughput target achieved from Ap
Slide 10: Sales
Sales Copper and gold sales For personal use only Quarterly sales of 16,322 tonnes of copper and 13,705oz of gold Year-to-date sales of 62,154 tonnes of copper and 41,725oz of gold DSO sales program complete – total 34,169 tonnes of copper and 15,218oz of gold Concentrate shipments progressing as sc
Slide 11: Production Guidance: FY2014
Production Guidance: FY2014 Key physicals – targets and guidance for FY2014 Key Operational Targets FY2014 – Guidance For personal use only Ore mined 1.45Mt Solely from underground operations. Ore processed 1.50Mt Includes stockpile of open pit sulphide (blending Q1 FY2014). Mined grade – copper 5.2
Slide 12: Production Guidance: FY2014
Production Guidance: FY2014 Guidance for metal production – copper and gold Metal production FY2014 – Guidance FY2013 – Actual For personal use only Cu(kt) Au(koz) Cu(kt) Au(koz) Concentrator 65-75 30-40 34 18 DSO - - 30 13 Oxide Gold - - - 12 TOTAL 65-75 30-40 64 43 DSO 4 2 Oxide Gold - 1 Total – F
Slide 13: Operating Cost and Capital Guidance: FY2014
Operating Cost and Capital Guidance: FY2014 Unit costs and capital expenditure For personal use only Key financial parameters FY2014 Guidance Q4 FY2013 Actual Key financial parameters FY2014 Guidance Unit costs – DeGrussa Mine US$/lb US$/lb Capital expenditure A$M Mining (net of development) 0.33 0.
Slide 14: Exploration Overview
Exploration Overview Near-mine exploration delivering results Strong ongoing commitment to near-mine and regional exploration: For personal use only $20M budget for DeGrussa/Doolgunna $10M budget for Australia-wide exploration for FY2014 Robust cash flows from DeGrussa underpin ongoing exploration c
Slide 15: Resource Growth
Resource Growth High Grade Mineral Resource increased, underpinning mine life extension For personal use only Mineral Resource recently increased, driven by extensions to Conductor 4 and significant thickening of Conductor 5: Achieved with 5 surface diamond drill holes Conductor 4 Mineral Resource i
Slide 16: Underground Exploration Gathering Momentum
Underground Exploration Gathering Momentum Commencement of C4/C5 declines marks beginning of a new chapter for DeGrussa For personal use only Development of the C1 and C4/C5 declines now underway from junction off Evans Decline Underground drilling positions to be established in 2H 2013 to target de
Slide 17: Life-of-Mine Outlook
Life-of-Mine Outlook Mine Plan, Mineral Resource and Ore Reserve For personal use only As at 31 March 2013 Mine Plan Mineral Resource Ore Reserve Tonnes (Mt) 10.5 10.2 7.9 - DeGrussa 1.6 1.4 1.6 - Conductor 1 5.5 5.2 5.3 - Conductor 4 1.9 2.1 1.0 - Conductor 5 1.5 1.4 - Cu grade (%) 4.9 5.7 5.0 Gold
Slide 18: Life-of-Mine Underground Development Profile, Source and Grade
Life-of-Mine Underground Development Profile, Source and Grade Bulk of underground development in first three years; including to access the Conductor 4 & 5 deposits For personal use only Page: 18
Slide 19: Summary
Summary DeGrussa ramp-up nearing completion; strong production and margin outlook; exploration gathering momentum Strong production performance in ramp-up year: For personal use only 64,017t copper production for FY2013 14,293t copper production for Q4FY13 @ C1 cost of US$1.37/lb Strong production a
Slide 20: June 2013 Quarterly Report Presentation
For personal use only June 2013 Quarterly Report Presentation Access this presentation at: Webcast – Karl Simich, Managing Director and CEO http://www.brrmedia.com/event/113088/ 18 July 2013 http://www.sandfire.com.au Page: 20
Slide 21: Appendix: Competent Person’s Statements
Appendix: Competent Person’s Statements Competent Person’s Statement – Mineral Resources and Open Pit Ore Reserves For personal use only The information in this report that relates to Mineral Resources and Open Pit Ore Reserves is based on information compiled by Mr. Ekow Taylor who is a Member of T
Slide 22: Appendix: Competent Person’s Statements
Appendix: Competent Person’s Statements Exploration and Resource Targets For personal use only Any discussion in relation to the potential quantity and grade of Exploration Targets is only conceptual in nature. While Sandfire is confident that it will report additional JORC compliant resources for t
Slide 23: Appendix: DeGrussa – Mining & Production Summary
Appendix: DeGrussa – Mining & Production Summary Strong production and sales performance Contained Copper Contained Gold June 2013 Quarter Tonnes Grade (% Cu) Grade (g/t Au) For personal use only (t) (oz) Mined - - - - - DSO Crushed - - - - - DSO sales 19,595 7.0 3.2 1,374 2,043 Mined 324,209 4.9 1.
Slide 24: Appendix: DeGrussa – Mining & Production Summary
Appendix: DeGrussa – Mining & Production Summary Strong production and sales performance Contained Copper Contained Gold FY2013 Tonnes Grade (% Cu) Grade (g/t Au) For personal use only (t) (oz) Mined 127,591 23.4 3.1 29,845 12,703 DSO Crushed 128,730 23.4 3.1 30,130 12,880 DSO sales 138,397 23.1 3.2
Slide 25: Appendix: DeGrussa – Mining & Production Summary
Appendix: DeGrussa – Mining & Production Summary Strong production and sales performance Contained Copper Contained Gold Project to date Tonnes Grade (% Cu) Grade (g/t Au) For personal use only (t) (oz) Mined 144,887 23.6 3.3 34,169 15,218 DSO Crushed 144,887 23.6 3.3 34,169 15,218 DSO sales 144,887
Sandfire Resources NL — Q4 FY2013 Earnings Presentation on 6ix